A subscription invoice is a bill routinely sent to active subscribers of a digital or product-related service. Depending on the type of subscription, customers can be required to pay in weekly, monthly, or yearly increments. Unlike one-time invoices, bills sent in routine intervals require a few additional fields to keep the customer informed accordingly. These include the date of the next payment, the billing interval (for example: “every 90 days”), and the date in which the subscription will end (if applicable). Membership Dues – For membership to an organization or another program.
Types of Subscriptions
In the modern economy, the consumer population is only becoming further entrenched in online products and services – with subscription-based offerings sitting at the forefront. According to a study conducted by McKinsey & Company, a staggering forty-six percent (46%) of those surveyed had at least one (1) subscription to a streaming service. Furthermore, the study posted that fifteen percent (15%) of respondents subscribed to a service that provides regular delivery of products. What does this all mean? Subscription business models cast a wide net over the internet’s users and are great structures to follow for businesses that apply. Subscriptions can include purely digital offerings, tangible, in-person services, and product deliveries. Examples of digital services include online newspapers, music / video streaming services, video game networks, parking passes, cable (internet + TV), phone plans, and many other recreational and utility-type services. Apart from digital-based services, product subscriptions are also very common. This can come in the form of:
- Scheduled food delivery
- “Loot” boxes (assortment of random toys and merchandise relating to a topic of interest to the subscriber)
- Print magazines